I've used PuTTY to connect via SSH to my FreeBSD- and Ubuntu-servers for several years, and I always move the cursor by using the keyboard. However, I wonder if it's possible to move the cursor in PuTTY by clicking on a target position with the mouse? It could be useful sometimes while editing files in nano etc.

This is in case controlled by the option Terminal | Features | Disable xterm-style mouse reporting from Putty's configuration dialog. If it's disabled, the mouseclicks are reported, otherwise they're not.

Many curses-like programs like elinks, vim and such also support the mouse in this way, sometimes even including the scroll wheel. Kinda cool, actually. :o)